Tactical coordination in a multi-location and multi-stage operations structure: A model and a pharmaceutical company case
In this paper, we look at the internal supply chain of an internationally operating firm characterized by a multi-location and multi-stage operations structure. We address problems at three levels, namely the strategic, tactical, and operational levels. Our approach goes beyond the operational literature, and focuses primarily on the tactical level. We specify a model and a case that capture strategic and tactical issues and relate the tactical issues to organizational issues. We simulate coordination in different organizational forms pertaining to the 'tactical control' of the firm. Our analysis suggests that a functionally organized multi-location and multi-stage operations structure using traditional planning will not work. The choice is between a strongly IT-based, centralized organization or a more decentralized organization using transfer prices as the coordination device.
Volume (Year): 35 (2007)
Issue (Month): 3 (June)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gomez, T. & Gonzalez, M. & Luque, M. & Miguel, F. & Ruiz, F., 2001. "Multiple objectives decomposition-coordination methods for hierarchical organizations," European Journal of Operational Research, Elsevier, vol. 133(2), pages 323-341, January.
- Lootsma, F. A., 1994. "Alternative optimization strategies for large-scale production-allocation problems," European Journal of Operational Research, Elsevier, vol. 75(1), pages 13-40, May.
- Jayaraman, Vaidyanathan & Pirkul, Hasan, 2001. "Planning and coordination of production and distribution facilities for multiple commodities," European Journal of Operational Research, Elsevier, vol. 133(2), pages 394-408, January.
- Thomas, Douglas J. & Griffin, Paul M., 1996. "Coordinated supply chain management," European Journal of Operational Research, Elsevier, vol. 94(1), pages 1-15, October.
- Bruce Kogut & Nalin Kulatilaka, 1994. "Operating Flexibility, Global Manufacturing, and the Option Value of a Multinational Network," Management Science, INFORMS, vol. 40(1), pages 123-139, January.
- Vidal, Carlos J. & Goetschalckx, Marc, 1997. "Strategic production-distribution models: A critical review with emphasis on global supply chain models," European Journal of Operational Research, Elsevier, vol. 98(1), pages 1-18, April.
- Goetschalckx, Marc & Vidal, Carlos J. & Dogan, Koray, 2002. "Modeling and design of global logistics systems: A review of integrated strategic and tactical models and design algorithms," European Journal of Operational Research, Elsevier, vol. 143(1), pages 1-18, November.
- A. M. Geoffrion & G. W. Graves, 1974. "Multicommodity Distribution System Design by Benders Decomposition," Management Science, INFORMS, vol. 20(5), pages 822-844, January.
When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:35:y:2007:i:3:p:258-273. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.